El Paso Energy to acquire Crystal Gas Storage for 5.80 times revenue

Weekly Corporate Growth Report, Oct 25, 1999

The Deal: El Paso Energy Corp. has agreed to acquire Crystal Gas Storage Inc. for $156 million and the assumption of $60 million in debt. Under the terms of the acquisition, Crystal shareholders will receive $57.00 a share in cash for each of their common shares outstanding. Crystal's outstanding preferred stock will be redeemed at $1.00 per share with the terms of such preferred stock.

Discussion: Crystal Gas Storage, through subsidiaries, owns and operates two natural gas storage operations near Hattiesburg, Mississippi. Its Hattiesburg and Petal salt cavems have a combined storage capacity of 6.7 billion cubic feet. The company serves the southeastern and northeastern U.S. through 33 miles of pipeline, which has links to major systems such as the Transco, Tennessee, Associated, and Koch pipelines. Crystal Gas also owns interests in natural gas properties, primarily in Arkansas and Louisiana.

El Paso Energy is a holding company engaged in gathering, transporting, processing, and marketing oil and natural gas. It transports gas to the midwestern, northeastern, and western U.S. through 28,000 miles of pipelines. Its Tennessee Gas Pipeline transports gas to the Midwest and East Coast, and El Paso Natural Gas serves the West. El Paso Energy International operates in South America, Europe, and the Asia/Pacific region. It focuses on building power plants and buying pipelines. The company is also engaged in power trading. Crystal Storage's assets strategically link El Paso's pipelines and fit the company's goal of owning flexible gas and power operations.

Copyright Quality Services Company Oct 25, 1999
Provided by ProQuest Information and Learning Company. All rights Reserved
 

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